New Delhi and Mumbai Authorities Set to Take Strict Action Against IndiGo Following Widespread Cancellations, As Airline Struggles to Recover Operations

Published on December 9, 2025

In a major setback for IndiGo, the country’s largest carrier, the Indian government has announced that it will take strict action against the airline to “set an example” for other airlines violating regulations. This comes after the airline faced widespread cancellations, which disrupted thousands of passengers’ plans. The Civil Aviation Minister emphasized the urgency of this situation and said that an inquiry is underway, with potential penalties expected.

The airline’s operations have faced significant disruptions over the past week, with many flights grounded due to the carrier’s delayed compliance with new pilot rest rules. IndiGo, which controls over 65% of the domestic aviation market, was forced to cancel thousands of flights, stranding tens of thousands of passengers. With the holiday season upon us, these disruptions have affected vacation plans, weddings, and other important events for many travelers across India.

Government Response: Aimed to Set an Example

The Directorate General of Civil Aviation (DGCA) issued a show-cause notice to IndiGo’s CEO, Pieter Elbers, and COO, Isidre Porqueras, after the airline failed to meet the new flight duty time limitations (FDTL) rules, which came into effect on November 1, 2025. These regulations, designed to improve safety and manage crew fatigue, reduced permissible landings for pilots within a 24-hour period from six to two or three. The strict rules aim to prevent accidents and improve the well-being of crew members.

As a result, IndiGo struggled with pilot shortages and had to ground flights. This resulted in mass cancellations, with over half of the airline’s daily flights — approximately 1,500 — cancelled at their peak. The government has said that they are taking this situation very seriously and will impose severe penalties on IndiGo to show the importance of adhering to aviation rules and regulations.

IndiGo’s Response and Recovery Plan

IndiGo has since submitted a comprehensive response to the DGCA’s show-cause notice. According to sources, the airline has expressed regret for the disruptions and is working diligently to improve its operations. On Monday, IndiGo operated 1,800 flights, up from 1,650 on Sunday, signaling a return to normalcy.

“We are optimising our operations and managing to reduce the number of cancellations,” IndiGo said in a statement. The airline also claimed improvements in its on-time performance (OTP), which has now reached 91% across the network. Despite over 500 cancellations on Monday alone, IndiGo is working to restore services and deliver the luggage that was delayed due to the cancellations.

The DGCA, in response to IndiGo’s submission, confirmed that it is in the process of reviewing the airline’s actions and will decide on enforcement action based on the findings. A four-member panel has been set up to look into the airline’s manpower planning, fluctuating rostering systems, and its compliance with FDTL norms.

The Financial Impact: Strained Market and Passenger Trust

The financial repercussions for IndiGo are already being felt. According to Moody’s Ratings, IndiGo could face significant losses, including penalties and compensation costs, such as refunds and customer reimbursements for lost tickets and delayed flights. Over 5,86,705 IndiGo tickets were cancelled between December 1 and 7, resulting in refunds worth ₹569.65 crore, with a total of ₹827 crore refunded for cancellations between November 21 and December 7.

The prolonged disruptions have also impacted IndiGo’s stock market performance. On Monday, IndiGo’s shares plunged by over 8%, marking its largest drop since February 2022. In contrast, shares of rival airline SpiceJet rose by 5%. This shows how the market is reacting to the turmoil surrounding IndiGo and the public perception of its operational stability.

Massive Refunds and Recovery Efforts

In light of the mass cancellations, IndiGo has been working to compensate passengers and resume services. The airline claims that it has successfully delivered over 4,500 checked-in bags to passengers who were affected by the cancellations. IndiGo further assured that it would deliver the remaining bags in the next 36 hours.

The airline also stated that all of its operations are now fully compliant with the relevant FDTL norms and safety regulations. Despite these efforts, the airline has been under intense scrutiny, and government officials have warned that this situation could set a precedent for other airlines that fail to comply with regulations in the future.

The Role of Pilot Rest Regulations

The new Phase 2 FDTL regulations introduced on November 1, 2025, are among the strictest globally. They were designed to address the growing concerns about pilot fatigue and safety. The regulations categorize any duty between midnight and 6 am as night duty and reduce permissible landings from six to two or three within a 24-hour period. This stricter approach has proven to be challenging for IndiGo, which operates a vast network of flights and has been criticized for its underpreparedness in managing the new rules.

These regulations were announced over a year ago, allowing airlines time to adjust. However, IndiGo’s delayed preparations, including insufficient pilot hiring and the airline’s ultra-optimised scheduling, left it vulnerable to disruption when the rules came into force.

What Lies Ahead?

The government’s inquiry into IndiGo’s operations continues, and the airline remains under close scrutiny. Civil Aviation Minister Ram Mohan Naidu has pledged that the government will “set an example” with this case to ensure that no airline operates above the law. It remains to be seen whether IndiGo will face severe penalties or if the airline’s recovery efforts will be enough to avert long-term damage to its reputation.

Meanwhile, the airline has vowed to continue working with authorities to restore normalcy. IndiGo’s CEO and COO are set to appear before the DGCA panel on December 10, where they will likely face further questioning.

Table: IndiGo Cancellations and Refunds (Dec 1–7, 2025)

As IndiGo continues its efforts to recover, the situation serves as a stark reminder of the importance of adhering to industry regulations. The coming days will be critical for the airline as it works to rebuild its credibility and regain customer trust.